<P>Hungarian help to rehabilitate reservoirs
[January 26 2013]

<P>Hungary will provide a US$ 45.5 million loan to Sri Lanka to rehabilitate the two main drinking water reservoirs and treatment plants at Labugama and Kalatuwawa, which serve the capital Colombo and suburbs. The loan will be provided by the Hungarian Export-Import Bank.

<P>A proposal by President Mahinda Rajapaksa, in his capacity as the Minister of Finance and Planning, to obtain the loan facility received Cabinet approval last week. 

<P>According to the agreement, the Export-Import Bank of Hungary will provide a maximum of US$ 22.3 million (Euro 16.71 million) to renovate the 127-year old Labugama plant and US$ 23.2 million (Euro 17.38 million) for the Kalatuwawa plant. 

<P>The two plants are operated by the National Water Supply and Drainage Board and distribute 106,000 cubic metres of water per day.